Sealcorp to cover advisers on GST
Sealcorp’s Asgard Capital Management and other operations will cover advisers from any upfront GST charges fully through a 10 per cent rise in upfront and trail commissions.
Sealcorp’s Asgard Capital Management and other operations will cover advisers from any upfront GST charges fully through a 10 per cent rise in upfront and trail commissions.
However, the Sealcorp group will pass on directly to investors, where applicable, any ongoing net GST costs, through a 2.5 per cent rise in Management Expense Ratios (MERs).
Asgard investors bear only one quarter of the GST cost because, as a master trust, it qualifies for reduced input tax credits (RITCs).
Sealcorp says any purchases and sales of investments by Asgard will not attract GST, while the services of the wholesale fund manager which attract GST, will only be reflected in the price of the fund.
Asgard group financial accountant Brad Scally adds that advisers will be able to claim a tax deduction of the cost of the GST on their fees, providing that these fees were deductible prior to GST.
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